Donald Trump has begun his second term as president by ramping up pressure on Panama – threatening to “take back” the Panama Canal and accusing the country of ceding control of the strategically critical waterway to a US rival: China.

President Trump is wrong when he says China controls the Panama Canal. But the U.S. rival does have influence there, and the administration is moving to counter it.

US Secretary of State Marco Rubio has demanded that Panama make "immediate changes" to what he calls the "influence and control" of China over the Panama Canal. America's top diplomat said Panama must act or the US would take necessary measures to protect its rights under a treaty between the two countries.

Some U.S. lawmakers and officials are touting a nearly half-century-old treaty between the United States and Panama to justify

Donald Trump is ramping up his anti-China rhetoric, accusing Panama of allowing Chinese influence over the Panama Canal.

Whether the U.S. or Panama own the Panama Canal, one of the largest routes for ship traffic in the world still faces horrible drought that will slow traffic through it, or shutter in completely from time to time.